The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1887-06-21
THE UNION PACIFIC COMMISSION.
Opening of the Investigation at Omaha-The
Company's Method in Its Land Business.

OMAHA Neb., June 20-Messrs. Pattison and
Littler. members of the Pacific Railroad Com
mission, arrived here this morning from the
East. They spent Saturday in Chicago. taking
the testimony of Marvin Hughitt, president of
the Chicago &c Northwestern Railroad Company.
and also president of the Sioux City & Pacific
Company. Mr. Hughitt testified that the Sioux
City 81 Pacific road would not be able. on the
maturity of the government lien, to pay anything
toward diecharging its obligations to the govern
ment If the government insisted on forcing
it's lien, the common stockholders, he thought.
would abandon the property. A majority of the
stock was now held by the Chicago & Northwest
ern Railroad Company. which bought the stock
for cash. at what rate Mr.. Hughitt did not know.
An examination of the minute book of the Sioux
City company disclosed, among other things,
the fact that about the time the Sioux City e.
Pacific was turned over TO the Northwestern
company, John l. Blair, of New Jersey, secured
passage by the Sioux City directors of resolu-
ton providing for assumption by the Northwest
ern company of all obligations of the Sioux City
company, except its obligations to the govern
ment
On reaching here to-day, the commissioners
set about at once the examination of officers of
the Union Pacific. Benz. McAllister, land COM
missioner, was closely pressed by Governor Pat
tison to answer whether it was not the policy of
the company to permit lands to remain un
patented in order to avoid local taxation He
finally answered yes but Mr.. Poppleton, coun-
sci for the company, explained to the COM
mssioners that MIR. McAllister could only
speak as to the Kansas di-ision, and
not as to the policy OF the coInpary, having
only recently taken charge of the land depart
ment Mr. McAllster added that for the last
five years, on the Kansas division, the company
had not applied for one-haf Of the patents it
would have applied for if 1t had got the patents
on lands it had paid on. 1t had applied for pat
ents and paid fees for nearly a million acres for
which 1t has got patents from the govern
ment.
In answer to O question by Commissioner Lit
tier as to why the company had not yet selected
all the lands to which it entitled, Mr.. Meal
lister said much was in localities where there
was no demand for land. Governor Pattison
asked the witness to ascertain and report to the
commission what amount of money the
pany could have paid in taxes if it had patented
all the lands to which it was entitled as soon as
survey was made.
Erastus Young, the auditor, testified as to GER
tain rebates or refundings appearing on the COM
panys books.
Governor Pattison took up some of the items
in detail, and asked for an explanation of them,
they disclosed the names of the parties to
whom the rebates and refunds had been made.
Mr.. Poppleton contended it was an improper line
through the press, dealings of the company in
matters of rebate. This would hurt the COM
pany. and he objected to the giving Of such in
formation before the reporters who were present.
In the discussion which ensued Governor Patti
son, with some warmth remarked that there
should be no star-chamber proceedings about
this commission.